Month: October 2025

The Delhi High Court ruled that a sister relinquishing her property rights in favor of her brother is not a gift

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The Delhi High Court ruled that a sister relinquishing her property rights in favor of her brother is not a gift, but a family settlement among co-owners.

In the landmark case Ramesh Sharma v. State (NCT of Delhi), decided on 8 October 2025, the Delhi High Court clarified that when legal heirs relinquish their rights in inherited property in favor of another co-owner, such a transaction is not a gift under the Indian Stamp Act, 1899, and therefore does not attract gift-related stamp duty.

🔍 Key Highlights from the Judgment

  • Case Title: Ramesh Sharma v. State (NCT of Delhi)
  • Citation: LPA No. 346 of 2020
  • Bench: Justices Anil Kshetarpal and Harish Vaidyanathan Shankar
  • Date of Decision: 8 October 2025
  • Court: Delhi High Court

🧾 Legal Interpretation

  • Relinquishment ≠ Gift: The court held that a relinquishment deed executed by sisters in favor of their brother, who was also a co-owner, is not a gratuitous transfer. It is a release of rights in a jointly inherited property.
  • Stamp Duty Implication: Since the deed does not constitute a gift, it is not liable for stamp duty under the gift provisions of the Indian Stamp Act.
  • Nature of Transaction: T

NOC not required from Registrar for Redevelopment – Bandra Nisha Co-op Soc.

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Key Facts

  1. No Court-Approval Needed for Redevelopment
    The court clarified that the District Deputy Registrar (DDR) has no legal authority under the Maharashtra Cooperative Societies Act to require or provide a “No Objection” for a housing society’s redevelopment.
    The General Body of the society holds the authority to make this decision.
  2. Role of the General Body
    Only the General Body can approve redevelopment, following the society’s bye-laws and relevant Government Resolutions.
    A majority-approved decision is legally binding.
  3. Registrar’s Role is Supervisory
    The DDR’s role is only to supervise, not to interfere or control. They cannot mandate a “No Objection,” nor can they block a redevelopment approved by the society.
  4. Challenge Mechanisms
    If a member believes the process is unfair, they must approach a Cooperative Court for redressal.
    The absence of a “No Objection” does not invalidate a decision made through proper procedure.

Practical Steps for Societies

  • Ensure an Authorized Officer is present at meetings for developer selection.
  • Maintain detailed records (minutes, attendance, approvals).
  • Follow documented procedures to strengthen legitimacy.

Directions to Registrars

  • Stop requiring “No Objection” certificates for redevelopment.
  • Strictly limit their role to oversight and ensuring transparency.
  • Reinforced by court order—compliance and no interference.

Bottom Line

This ruling protects the autonomy of housing societies in redevelopment decisions, clearly stating that registrars cannot veto or control these processes. The focus is now on transparency, proper procedure, and majority-based decision-making within the society itself.

Bandra Nisha HC Order – NOC not Reqd for RedevelopmentDownload